Budget surplus, lower taxes expected in Mount Prospect

Mount Prospect's proposed 2017 budget boasts a surplus, while the addition of taxable properties in the village through annexation likely will result in lower tax bills for residents.

But the chair of the village's Finance Commission thinks leaders can go even further in delivering good news.

John Kellerhals told the village board this week that the majority of his commission recommends no hike in next year's tax levy, as opposed to the 2.27-percent increase currently proposed. The impact on the budget, he said, would only be an additional $410,000, at a time when the village projects a surplus and substantial reserves.

Finance Director David Erb said the surplus primarily is a result of growth in sales tax revenues.

As a result, the owner of a home with a market value of $350,000 should see an estimated decrease of $15 from the village's portion of next year's tax bill. The village's share of the total tax bill is about 12.4 percent.

On Dec. 6, the board will consider a $112 million budget for 2017, 3.4-percent decrease from this year's budget. The operating budget would be $70 million.

Although the village board did not outright dismiss a flat levy, Mayor Arlene Juracek and some trustees said they are concerned about the fiscal uncertainty in Springfield and how it could affect Mount Prospect.

"There is a huge risk out there from the state end. A good portion of our revenues flow through the state," Juracek said.

There also is concern about the village's future pension obligations. Pension costs are exceeding 50 percent of operating costs, Trustee John Matuszak said.

Trustee Michael Zadel said going with a flat levy next year could mean to a large levy hike the following year.

"All of a sudden, it could go from zero percent to 6.3 percent," he said.

However, Trustee Paul Hoefert said it would be worthwhile to at least take a further look at a flat levy.

"We did a zero percent back in 2008," he said. "The economy was in the toilet. People were struggling, and the mayor you - were a trustee at the time - suggested we do that. It was the right thing to do at the right time."

In general, trustees rejoiced at the 2017 budget, saying it reflects a village that is in its best financial shape in years.

"This is probably the best budget we have seen over the last 10 years," Trustee Richard Rogers said.